5 strategies for franchise success over the long haul

22/06/2016
Christy Wilson Delk clearly remembers the moment when the idea of running her own franchise first popped into her head. She was on a plane two decades ago and caught an Inc. magazine article on Boston Chicken Chairman and CEO (it later became Boston Market) George Naddaff and his competitive secrets. She sold her house, cashed out her 401K plan for the down payment on the $1.7 million dollar SBA loan needed to buy and build a Kids R Kids Academy franchise in Orlando, Florida.

Over the next 15 years, she expanded twice and grew her business into one of the largest franchises in her industry before exiting successfully in 2012.
Delk, who is a professional speaker and an adjunct professor of Entrepreneurship at Rollins College,still has that same cover her office wall. She discussed what it takes to go launch and sustain a success franchise during last week’s International Franchise Expo at the Javits Center in New York City.
"What is it that differentiates you from competitors and other franchise in your industry?" she asked attendees, admitting that standing out is always a top challenge. Another one is accepting the fear factor.
"Acknowledging there is a bit of fearfulness going into a business...it’s one reason I was successful as I kept building strategies to keep on track, keep motivated," she said.
In fact, defining and sustaining a strategy is one of five strategies that leads to success in the long haul, explained Delk.
"What is the intentional purpose, the position of your business, as defined by you," she asked the audience about their businesses. A strategy must represent opportunities that support differentiation, growth and profitability.
At the very start, Delk recommends conducting a one-on-one meeting with yourself every year before committing to the revised strategy.
"You must be accountable to yourself," she said.
Here is a synopsis of the five strategy actions Delk outlined during her talk:

1. Plan your profit. What is your financial outlook, what data can you gather regarding financials. Delk noted that a well-respected leader states that good leaders ask great questions and great leaders ask a lot of questions about numbers.
2. Go big on leadership and be the leader your staff wants and craves. Plan an actual leadership program.
3. Maintain a true competitive position. Do a great amount of competitive analysis from the very start of the business
4. Plan for the worse. And develop answers to the "what if XYZ happens" questions. Bad things do happen,said Delk, but planning is key. During her years as a franchise owner she dealt with three hurricanes and employees embezzling.
5. Build layers of loyalty.This includes clients, staff, community and the franchisor.

"If you do all five you will gain energy and efficiency, have motivation and enthusiasm and that will grow the revenue path," she said.

Fonte:http://www.fastcasual.com/articles/5-strategies-for-franchise-success-over-the-long-haul/

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